To: George Dawson who wrote (12081 ) 10/31/1997 2:48:00 AM From: Kerry Lee Respond to of 29386
Re-posted from Motley Fool: Subject: FC Marketplace News Date: Thu, Oct 30, 1997 15:05 EST From: LongBow100 Message-id: <19971030200501.PAA15733@ladder01.news.aol.com> WESTBORO, Mass., Oct 30 (Reuters) - Computer systems maker Data General Corp, reporting record fourth-quarter sales, said Thursday it expected slow sales of its new fibre-channel CLARiiON disk arrays continue through the end of the year. "As is often the case, complex technology transitions can take longer than expected with different development and testing required for each new platform," chief executive Ronald Skates in a statement. "We believe these transition issues impacted our fourth quarter CLARiiON growth, and based on recent forecasts from our resellers, may also impact our first fiscal quarter." The company Thursday reported a net income of $17.0 million, or $0.35 a share, on record sales of $404.1 million in the fourth quarter ended September 27. This compared with a $9.9 million net, or $0.24 a share, on sales of $336.2 million in the 1996 quarter. But Data General's results fell short of Wall Street expectations, which had put its earnings at $0.37 a share, according to an October 24 First Call poll of 10 analysts. The company's stock plummeted 18 percent to 19-1/8, down 4-1/4, in Thursday afternoon trading, after the New York Stock Exchange had halted trading in the shares in the morning. The company reported a 15-percent sales increase of its AViiON servers. Revenues from products based on Intel Corp <INTC.O> technology more than doubled in the quarter, offsetting a 53-percent sales drop of AViiON systems based on older Motorola Inc <MOT.N> 88K techno